Originally Posted by
Saggy Aggie
Wti and Brent have been hovering around 70/80, respectively, for a while now. I think the intention is to keep it that range because it’s profitable for the oil industry while not gouging consumers (i.e 4+$/gal).
The recent sanctions on Iran is taking barrels off the market but Saudi/Russia and opec have the ability to increase production as needed and meet frequently to discuss the on going production limit agreements.
Of course domestic production is not regulated by opec and has been increasing significantly, but proposition 112 on the upcoming ballot in Colorado could have a massive effect. If the initiative passes, it would essentially ban oil and gas drilling in Colorado, which is a major source of production (DJ basin).
Lots of factors at play....